Cognizant logs 19% jump in April-June net
7 Aug 2013 11:04 PM GMT
IT services firm Cognizant on Tuesday posted a better-than-expected 19 per cent increase in its net profit at $300.4 million in the (April-June) second quarter this year helped by broad-based growth across geographies and segments.
The US-based firm had reported a net profit of $251.9 million in the year-ago period, it said in a release. Buoyed by its performance, Cognizant raised its revenue guidance for 2013 to $8.74 billion, up at least 19 per cent compared to 2012. It follows January-December as fiscal year.
Its revenues for the April-June quarter of 2013 rose by 20 per cent to $2.16 billion in second quarter of 2013 against $1.79 billion is the same quarter of 2012 beating its own estimate.
For the second quarter of 2013, Cognizant had said earlier it expects revenues to be 'at least $2.13 billion'.
'Continued healthy demand in the second quarter resulted in broad-based growth across our industries, geographies and services, thereby driving significant revenue and EPS outperformance,' Cognizant CFO Karen McLoughlin said.
Excluding the $0.07 of non-operating foreign exchange loss, which was not included in the guidance, the firm is pleased that it exceeded the non-GAAP EPS guidance for the quarter by $0.08, McLoughlin added.Analysts said Cognizant earnings beat expectations.
'Cognizant beat revenue and EPS expectations and it guided expectations higher than before specifically, full year revenue guide is now almost at our much higher than consensus estimate and still includes use of 'at least' to form a lower bound on this estimate,'Citigroup said in a note.
'In addition, strong cash flows during the quarter allowed us to increase our cash and short-term investment balances to approximately $2.9 billion,' McLoughlin said.
On the revenue outlook, the firm reviewed its guidance upwards for the full 2013 fiscal.'Fiscal 2013 revenue expected to be at least $8.74 billion, up at least 19 per cent compared to 2012,' it added.While presenting the first quarter results, Cognizant had said its expects revenues to grow at 17 per cent to 'at least $8.6 billion' against 20 per cent growth achieved in 2012. Earlier, rivals TCS, Infosys, Wipro and HCL technologies reported better-than-expected results signalling a pick-up in demand for Indian IT outsourcing services providers.
'Our 15 year record of revenue and earnings growth is a testament to our long-term strategy of reinvesting in our business to stay relevant to our clients' changing needs and to provide increasing value as we grow each of those trusted relationships,' Cognizant CEO Francisco D'Souza said.
This reinvestment strategy continues to enable Cognizant to excel in its core services while simultaneously investing in multiple horizons of growth, thereby continuing to position it well for the future, he added.The company added 1,600 employees (net) during the quarter taking its total headcount to about 164,300 employees as of 30 June, 2013.
The US-based firm had reported a net profit of $251.9 million in the year-ago period, it said in a release. Buoyed by its performance, Cognizant raised its revenue guidance for 2013 to $8.74 billion, up at least 19 per cent compared to 2012. It follows January-December as fiscal year.
Its revenues for the April-June quarter of 2013 rose by 20 per cent to $2.16 billion in second quarter of 2013 against $1.79 billion is the same quarter of 2012 beating its own estimate.
For the second quarter of 2013, Cognizant had said earlier it expects revenues to be 'at least $2.13 billion'.
'Continued healthy demand in the second quarter resulted in broad-based growth across our industries, geographies and services, thereby driving significant revenue and EPS outperformance,' Cognizant CFO Karen McLoughlin said.
Excluding the $0.07 of non-operating foreign exchange loss, which was not included in the guidance, the firm is pleased that it exceeded the non-GAAP EPS guidance for the quarter by $0.08, McLoughlin added.Analysts said Cognizant earnings beat expectations.
'Cognizant beat revenue and EPS expectations and it guided expectations higher than before specifically, full year revenue guide is now almost at our much higher than consensus estimate and still includes use of 'at least' to form a lower bound on this estimate,'Citigroup said in a note.
'In addition, strong cash flows during the quarter allowed us to increase our cash and short-term investment balances to approximately $2.9 billion,' McLoughlin said.
On the revenue outlook, the firm reviewed its guidance upwards for the full 2013 fiscal.'Fiscal 2013 revenue expected to be at least $8.74 billion, up at least 19 per cent compared to 2012,' it added.While presenting the first quarter results, Cognizant had said its expects revenues to grow at 17 per cent to 'at least $8.6 billion' against 20 per cent growth achieved in 2012. Earlier, rivals TCS, Infosys, Wipro and HCL technologies reported better-than-expected results signalling a pick-up in demand for Indian IT outsourcing services providers.
'Our 15 year record of revenue and earnings growth is a testament to our long-term strategy of reinvesting in our business to stay relevant to our clients' changing needs and to provide increasing value as we grow each of those trusted relationships,' Cognizant CEO Francisco D'Souza said.
This reinvestment strategy continues to enable Cognizant to excel in its core services while simultaneously investing in multiple horizons of growth, thereby continuing to position it well for the future, he added.The company added 1,600 employees (net) during the quarter taking its total headcount to about 164,300 employees as of 30 June, 2013.
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